Weir Group plc has three main divisions: Oil & Gas, Minerals, Power & Industrial. Oil & Gas
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Weir Group plc has three main divisions: Oil & Gas, Minerals, Power & Industrial. Oil & Gas accounts for 40 per cent of the company’s assets and Minerals accounts for 35 per cent of the assets. It has been estimated that the asset betas for these divisions are 1.2, 0.8 and 0.6 respectively. The company employs 30 per cent debt in its capital structure. Estimate the beta of Weir Group’s equity if the debt is risk-free.
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Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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